| Since the reform and opening up, the national economy has been developing vigorously. The traditional bank-centric financial system has also been undergoing a series of evolutions as a response to the changes in economic system. Product innovations in the financial market as well as favorable policies and stimulations from Chinese government have all contributed to the expansion of the fund management sector. The first private equity fund in China dates back to as early as the 1980s, when the China New Technology and Innovation Investment Company were established in Beijing in 1985. As of August 2016, the number of registered private equity fund management firms has reached over 17 thousand, making a great contribution to the economic development. However, for an industry with a short history, the rules and regulations are not yet mature. In 2015, China Securities Regulatory Commission together with various regulative bodies inspected more than 140 private equity funds and fund sales agencies, and found a lot of problems that cannot be ignored.This paper first demonstrated the theory of the operation management of private equity fund. Then by taking AB private equity fund as an example, the paper analyzed the company’s organizational structure, investment direction, financing channels, human resources, and other aspects, and addressed important issues in fund management including fundraising, investment decision making, portfolio management, and exit strategies etc. A comparative study between AB fund and leading funds from both home and abroad allows an in depth analysis of the problems in the operation and management of the company. Based on the author’s practical experiences as well as comprehensive literature studies, the paper attempts to propose a viable operating model for AB private equity fund in particular and to provide an exploratory example to the further evolution and improvement of the operational management of the private equity fund management industry in China. |
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